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Massachusetts congressional delegation demands answers from Steward’s private equity founders – The Boston Globe

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Massachusetts congressional delegation demands answers from Steward’s private equity founders – The Boston Globe


“We have long been concerned about the nefarious role of private equity in our economy,” the delegates said in the letter. “The dire threat of Steward’s collapse appears to be a textbook example of the grave risks posed by a private equity takeover of the health care system.”

A spokesperson for Cerberus was not immediately available for comment.

Previously, Steward has blamed its financial challenges in part on the relatively low rates it receives for services to Medicaid patients. And even for patients with more lucrative commercial insurance, Steward has said, its hospitals still are paid less than others in the market.

The letter comes amid increasing struggles for Steward Health Care, which is facing numerous lawsuits over alleged nonpayment to vendors, closing hospitals in other states, and having difficulty making rent payments. As reported by the Boston Globe, executives have been in talks with Massachusetts state officials over possible solutions to their financial crisis, which have included options ranging from selling or closing some hospitals or services, to at times requests for state financial support.

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The Dallas-based health system, which counts nine hospitals in Massachusetts and more than 30 nationally, has so far announced the closure of one facility, New England Sinai Hospital, a rehabilitation hospital in Stoughton. Additional closures have not been announced, and the company has insisted that none are imminent.

Still, financial challenges have created problems at facilities that remain. Supply shortages have been so pervasive that Mass General Brigham removed some of its doctors for a time from performing surgeries at some Steward hospitals. Since late January, the Department of Public Health has been doing daily monitoring at many Steward hospitals to check on staffing and service availability, monitoring they increased this week.

The note to Cerberus was signed by the entire all-Democratic, delegation, including US Senators Elizabeth Warren and Edward Markey, and US Representatives Richard Neal, James McGovern, Stephen Lynch, William Keating, Katherine Clark, Seth Moulton, Lori Trahan, Ayanna Pressley, and Jake Auchincloss. According to the delegation, the current financial precarity was created — if not magnified — by Cerberus’s actions.

Warren’s office in particular has targeted private equity firms in legislation she’s filed, including the Stop Wall Street Looting Act, which among other things would have made private equity firms jointly liable for all the debt incurred by the acquired entity. Warren has filed such legislation in 2018 and 2021, though it did not pass.

Named after the mythical three-headed dog guarding the gates of the underworld, Cebrerus became involved with Steward at its founding. As detailed by the letter, Cerberus invested $246 million through the purchase of Caritas Cristi Health Care in 2010, rechristened the system as Steward, and left CEO Dr. Ralph de la Torre in charge.

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Six years later, Cerberus-owned Steward signed a $1.25 billion deal with Medical Properties Trust, in which Steward sold its hospital properties to MPT, locking Steward into a multiyear, multimillion dollar lease payment. The deal returned Cerberus’s initial investment, but the private equity firm still retained a controlling stake in the company.

In May 2020, Cerberus exited entirely, transferring its ownership stake to a group of Steward doctors in exchange for a note that would provide regular interest payments. Steward borrowed $335 million from MPT in January 2021 to buy the note.

“Over the six-year period, Steward took on over a billion dollars in liabilities — while Cerberus executives profited handsomely,” the letter states. “The net result of these transactions appears to be an unfolding tragedy. Cerberus and its private equity executives received $800 million in profits, while thousands of Massachusetts health care workers’ jobs are at risk and 10 communities in the Commonwealth face the potential closure of hospitals that are debt-ridden, unable to pay their bills, and teetering on the financial brink.”

The letter comes after the delegation sent a similar missive to de la Torre in late January, asking for a seat at the table as Steward discussed its plans with state officials, and wanting a briefing on the health system’s financial position and the status of its facilities in Massachusetts.

Lynch said his staff and others met with Steward executives and were informed that Steward’s intent was to exit the Massachusetts health market. Of the remaining eight hospitals that will exist after the rehab hospital’s closure, four — Nashoba Valley Medical Center, St. Elizabeth’s Medical Center, Holy Family Hospital, and Norwood Hospital — had to be transferred urgently.

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Norwood Hospital has been temporarily closed since 2020 due to catastrophic flooding.

Lynch said at the root of the financial struggle was the for-profit structure of Steward.

“They have two missions — they have to satisfy the obligations they have to their private equity firm and shareholders to generate a profit,” he said in an interview. “And then they got another mission, to provide high quality health care. Sometimes those two missions are at odds. There is friction between them. That’s at the root of this. It’s their business model.”


Jessica Bartlett can be reached at jessica.bartlett@globe.com. Follow her @ByJessBartlett.

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Snow, ice, rain to impact roads in Massachusetts – Boston News, Weather, Sports | WHDH 7News

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Snow, ice, rain to impact roads in Massachusetts – Boston News, Weather, Sports | WHDH 7News


Happy Tuesday! While today started off dry, we’re already looking at snow out there across the area. While this event will primarily stay as rain on the Cape and islands, it will be an icy mix of snow, ice and rain for the rest of us.

The rain/snow line will continue to advance from the south to the north as the evening progresses. Before the changeover, there will be a quick coating to 2 inches for most of our area.

The threshold between the snow and rain will feature sleet and freezing rain, leading to that icing.

For the rest of the night, there will primarily be rain with continued pockets of freezing rain, leading to increasing spotty ice accretion. Be extremely careful on roads, especially since switching between rain and freezing rain can wash off any road salt.

The rain and freezing rain will exit by 6 a.m. Wednesday, but temperatures will still be close to freezing during the morning commute, so watch out for some spotty black ice.

The rest of Wednesday will be really nice! Highs will warm up to the mid 50s with the help of ample sun.

Thursday we start off in the mid 20s and top off in the mid 40s. We’ll be partly sunny with another chance for some wintry weather Thursday night. This primarily looks like some rain and freezing rain, rather than the triple threat with snow too. We’ll keep an eye on that for you.

That will continue into Friday morning. The rest of Friday: cloudy with a chance for a spot shower and highs cooler again in the upper 30s. Saturday will be dry, breezy and cloudy but gorgeous near 50 degrees! There’s a chance for some rain showers Saturday night. Don’t forget to set your clocks forward an hour before you to go bed!

Sunday we start the day mild in the 40s and make it all the way into the upper 50s with more sun. Monday and Tuesday both look bright and in the 60s! Stay tuned.

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Massachusetts man awaits word from family in Iran after attacks

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Massachusetts man awaits word from family in Iran after attacks




Massachusetts man awaits word from family in Iran after attacks – CBS Boston

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Poya Sohrabi hasn’t heard from his family since they took shelter from attacks in Tehran. WBZ-TV’s Mike Sullivan reports.

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How will the Iran war impact gas prices in Massachusetts?

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How will the Iran war impact gas prices in Massachusetts?


With a widening conflict in the Middle East after the American and Israeli attack on Iran Saturday, global markets are bracing for a shakeup in the energy supply chain.

So, here at home, what can consumers expect at the gas pump?

An increase in oil prices is almost always followed by an increase in gas prices. And the oil market has already reacted to the war. NBC News reported on Sunday that U.S. crude oil initially spiked more than 10%, while Brent, the international oil benchmark, rose as much as 13%.

Early Monday morning, reports were coming in of black smoke rising from the U.S. embassy in Kuwait City.

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While Iran’s oil reserves supply less than an estimated 5% of global production, the main concern is the Strait of Hormuz. This maritime passageway borders Iran at the bottleneck of the Persian Gulf, and more than 20% of the world’s oil passes through. If Iran closes or restricts Hormuz, the oil market could face severe disruptions.

Gas prices rise about 2.5 cents for every dollar increase in crude oil prices. As of Sunday, U.S. crude oil prices had already increased by nearly $5 a barrel.

“I fully expect that by Monday night, you could credibly say that gas prices are being impacted by oil prices having gone up,” GasBuddy analyst Patrick De Haan told NBC News.

GasBuddy characterizes their expectations for price increases as “incremental” rather than “explosive”. The group said to anticipate a potential 10-15 cent increase over the next couple of weeks.

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